Best Business Decision?

This Year 500,000 New Businesses Will Start And 400,000 Will Fail – Why?

What is the Best Business Decision?

Should you focus on increasing your sales or reducing your costs to increase your profits by $1,000?

The following table will help you answer this question.

A.     What is your profit percentage? 

B.     What amount of incremental sales is needed to increase
         profits by $1,000?

C.     What amount of cost reduction is required to increase
         profits by $1,000?

A B C
Corporate
Net Profit %
Required Sales
Increase $
Required
Cost Reduction $

15

12

10

8

6

5

4

3

2

1

$6,667

$8,333

$10,000

$12,500

$16,667

$20,000

$25,000

$33,333

$50,000

$100,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

 

This Year 500,000 New Businesses Will Start And 400,000 Will Fail – Why?

What is the Best Business Decision?

Should you focus on increasing your sales or reducing your costs to increase your profits by $1,000?

The following table will help you answer this question.

A.     What is your profit percentage? 

B.     What amount of incremental sales is needed to increase
         profits by $1,000?

C.     What amount of cost reduction is required to increase
         profits by $1,000?

A B C
Corporate
Net Profit %
Required Sales
Increase $
Required
Cost Reduction $

15

12

10

8

6

5

4

3

2

1

$6,667

$8,333

$10,000

$12,500

$16,667

$20,000

$25,000

$33,333

$50,000

$100,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

$1,000

 

 
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